The impact of strategy and information systems flexibility on the supply chain performance: a path analysis approach

Abstract

Using the data collected from 175 small- and medium-sized manufacturing firms in Canada; we examine the effect that three different strategies with information systems flexibility (ISF) have on performance. The study produced three main conclusions. First, the findings provide evidence of the direct effects of strategy on ISF. Second, the total effect of strategy and ISF positively impacted non-financial performance. Third, the total effect of strategy and ISF has no effect on financial performance. The main implication is that the investment in ISF should be involved in the strategic decision-making about setting clear priorities before engaging in any flexibility investment program.